The Ethereum Open Interest (OI) data has increased by approximately $1.5 billion in the last 3 weeks.

For those who are new to this, "Open Interest" shows the total number of open (long and short) positions for a particular instrument.

So, OI increased, but what happened then, Burak?

As leveraged trading increases, liquidations become inevitable. This, in turn, brings high volatility. Therefore, I believe that OI is one of the data points that needs to be closely monitored.

Additionally, if we relate the topic to spot ETFs, the Ethereum OI data made a local peak on the day spot ETFs started trading, retracting by approximately $600 million. This allowed the market to take a bit of a breather.

Written by burakkesmeci